Level 1

posted Mar 30, 2022 9:31:43 AM

1099-R Showing Taxable But Aren't

I rolled over my employee profit sharing IRA to another IRA when I retired. Two of the 1099-R's I received from my previous employer showed amounts as Taxable and Code U. When I enter into Turbo Tax I get congratulated that this will not be taxable, yet the running balance at the top of the screen reflects it as being taxable. How do I fix this? Nothing was withheld.

0

1

301

1 Best answer

Expert Alumni

Mar 30, 2022 9:44:06 AM

Ignore the blurb from the program. Code U:

Dividends distributed from an ESOP under section 404(k).

Use Code U for a distribution of dividends from an employee stock ownership plan (ESOP) under section 404(k). These are not eligible rollover distributions.

1 Replies

Expert Alumni

Mar 30, 2022 9:44:06 AM

Ignore the blurb from the program. Code U:

Dividends distributed from an ESOP under section 404(k).

Use Code U for a distribution of dividends from an employee stock ownership plan (ESOP) under section 404(k). These are not eligible rollover distributions.

TurboTax Home & Biz Windows